Hkex Intends To Push Renminbi Denominated Futures Contracts

< p > with the early purchase of the "Dongfeng" of the London Metal Exchange (LME), Hong Kong Exchanges and Clearing Ltd (hereinafter referred to as the "HKEx") expanded its business area to commodity trading for the first time.

In April 22nd, HKEx announced that it will launch the first four Asian commodity futures contracts, of which aluminum, copper and zinc contracts are denominated in Renminbi.

The news triggered widespread concern including international media such as Reuters, Bloomberg and the financial times.

As Asia is the largest consumer and producer of zinc and aluminum in the world, and is also one of the main importing areas of copper, what kind of impact and opportunity will the HKEx launch its futures contract with RMB denominated? < /p >

< p > < strong > > a href= "http://www.91se91.com/news/index_c.asp > > futures contract < /a > highlighting characteristics < /strong > /p >

< p > according to the documents issued by the HKEx, the four futures will soon be different from the traditional LME commodity futures.

From the point of view of the contract units, the three London metal futures contracts proposed by the HKEx are aluminum, copper and zinc, which are all "mini contracts". The contract units are 5 tons / hand, far less than the traditional 25 ton / hand contract units in LME.

From the way of settlement and settlement currency, the three futures contracts are settled in cash instead of physical delivery, and are settled in RMB and are the only settlement currency.

From the time of paction, the three futures contracts are traded from Monday to Friday, from 9 a.m. to 4:15 p.m. (day trading time), from 5 p.m. to 1 a.m. (after the futures trading session).

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In addition to the aluminum, copper and zinc futures contracts, the HKEx has also introduced the API8 power coal futures.

As is known to all, LME has not covered coal futures.

Bai Bimei, director of the Asian commodities Department of the Hong Kong stock exchange, said that the reason for this arrangement is the demand in the market. After all, China is the largest consumer of coal in the world.

"We have done related calculations before, and there are strong demand for these contracts in the market."

On the 23 day, a domestic futures trader who declined to be named in this interview with our reporter said that compared with LME, the mini contracts, RMB settlement, coal futures and trading hours covering the main trading periods in Asia and Europe were all featured in the four contracts issued by the HKEx, which will increase the market attractiveness of their futures contracts.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > RMB > /a > internationalization or increasing power < /strong > /p >

< p > for the four futures contracts launched by the HKEx, many media will focus on "Hong Kong Shanghai Tong".

But Cao Heping, a professor and doctoral tutor of Peking University School of economics who interviewed by our reporter on 23 th, said that if Hong Kong Stock Exchange's follow-up to LME can be smooth sailing, the futures contracts launched by HKEx are likely to be significant.

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< p > "London futures exchange and London RMB market are all together."

Cao Heping said that in the context of the successful completion of the LME merger by the HKEx, it also launched a Renminbi denominated futures contract. It is conceivable that if a board in the London futures exchange is always settled in Renminbi, many domestic futures brokers will make the market in the London market, and the resulting settlement and currency demand will be linked to the London market.

Many market makers in the London market, both in European currencies and in Renminbi, will greatly boost the prosperity of the RMB market in London.

Moreover, if the cooperation between the two cities of Shanghai and Hong Kong is further pushed forward, the demand effect of RMB settlement will show geometric magnification, which will be significant for the internationalization of RMB.

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< p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > HKEx < /a > or will face challenges < /strong > /p >

< p > "we launch the Asian commodity platform to meet the needs of Asian commodity markets, and RMB denominated futures contracts can provide customers with monetary convenience."

Li Xiaojia, chief executive of HKEx group, said at the press conference on the day that this is only the opening of the HKEx Asian commodity plan, and there will be more actions in the future.

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< p > after 20 years of precipitation and development, Hongkong has formed a huge and prosperous H-share market in Hong Kong and so on.

Some analysts said that the Hong Kong exchange's copper, aluminum and zinc futures contracts were themselves the three largest LME volume and the largest turnover.

If the four futures contracts launched by HKEx can be successful, it may have a positive impact on China's promotion of international commodity pricing rights in the future.

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< p > "if the success of the HKEx's commodity trading platform is successful, it will indeed impact the existing global commodity exchange rankings."

Cao Heping said, however, in the process, the ability of the HKSAR and Hongkong regulators will be faced with a great challenge and their prospects can not be blindly optimistic.

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